How to read a Gilt for a pension gilt ladder?

MetaPhysical

Looking at the Gilt example above on Interactive Investor, please sanity check my understanding.

So I'd buy the £100 Gilt for £96.60 if I were to buy it today and I'd get back £100 upon maturity making me £3.40 profit which would be free from CGT (good to hold in a GIA). 3.40/96.60 = 3.52%

I'd also get a 37.5p coupon in December and another one in June (?) - so another 75p (taxable).

Therefore I made - before tax -  3.40 + 37.5p +37.5p = 4.15      4.15/96.60.  = 4.3%

So is the Yield To maturity 4.3% or is it 3.52% please?

When you spit this out on a tax return, how is this reported?  Presumably the CGT can be ignored because it's a gilt and the coupon is interest (20/40/45%) or a dividend?   And presumably the coupon profit is reported every year but the CGT - if it is reportable - upon maturity?

Many thanks in advance.

FIREDreamer

MetaPhysical said:

Looking at the Gilt example above on Interactive Investor, please sanity check my understanding.

So I'd buy the £100 Gilt for £96.60 if I were to buy it today and I'd get back £100 upon maturity making me £3.40 profit which would be free from CGT (good to hold in a GIA). 3.40/96.60 = 3.52%

I'd also get a 37.5p coupon in December and another one in June (?) - so another 75p (taxable).

Therefore I made - before tax -  3.40 + 37.5p +37.5p = 4.15      4.15/96.60.  = 4.3%

So is the Yield To maturity 4.3% or is it 3.52% please?

When you spit this out on a tax return, how is this reported?  Presumably the CGT can be ignored because it's a gilt and the coupon is interest (20/40/45%) or a dividend?   And presumably the coupon profit is reported every year but the CGT - if it is reportable - upon maturity?

Many thanks in advance.

Dividend data gives these figures if it helps.

Note that 96.60 is the clean price, you buy (and sell) at the dirty price which reflects accrued interest.

DRS1

The 0.375% coupon is per annum so I think you have one too many 37.5p in your sums.

DRS1

Oh and don't forget that you can deduct the accrued income (0.174 in @FIREDreamer's post) from the coupon received when you do your tax return.